Retirement annuity tax calculator
Contributions to a retirement annuity reduce your taxable income, so SARS effectively pays part of them. See what your contribution really costs, using the 2026/27 tax tables.
Tax you save each year
R 9 300a year
Your R 2 500 a month really costs you R 1 725. SARS covers the other R 775, or 31% of it.
- You pay R 1 725
- Tax saved R 775
Your deduction limit
| 27,5% of your incomecapped at R 430 000 a year | R 132 000 |
| Room left for RA contributions this year | R 132 000 |
That's up to R 11 000 a month that you can contribute and deduct.
Before and after
Income tax without the RA
R 92 217
Income tax with the RA
R 82 917
Your top tax rate
31%
Tax saved per R100 contributed
R 31
How the deduction works
Contributions to pension, provident and retirement annuity funds are deductible up to 27,5% of your income, with a combined limit of R 430 000 a year. The saving is your contribution multiplied by your top tax rate, which is why higher earners save more per rand.
If your RA is paid by debit order rather than through your employer's payroll, the saving reaches you as a tax refund when you file your return. Your RA provider sends you an IT3(f) certificate to include.
Before you sign up
Money in an RA is locked in until age 55, apart from the two-pot savings component. At retirement, at least two-thirds generally buys an annuity that pays you an income.
Compare fees between providers: a difference of 1% a year can cost more than the tax you save over a long period. Low-cost index RAs are widely available in South Africa.